The Bank of New York Launches Reporting Service to Support European Tax Discrimination Claims Filing
LONDON, June 29, 2006 – The Bank of New York, a global leader in securities servicing, has launched a reporting service to assist European clients who want to claim additional refunds of tax paid on investments, for example withholding tax, as a result of precedents set by recent European court rulings.
The new service will help clients by providing information on income received and the tax paid on investments in impacted countries. Requests for information would follow a client having sought independent tax advice on the likelihood of obtaining a refund under the current rulings.
Robert Darmanin, managing director, head of European custody and pensions, said, "Investors are looking for a level playing field when it comes to reclaiming tax on European investments. We are working proactively to address changes in the market place by providing an enhanced service to our clients. This product will help improve returns for them and demonstrates our commitment to deliver best of class solutions to their needs."
Over the last few years, rulings made by the European Court of Justice (ECJ) and the European Free Trade Association (EFTA) Court in several recent tax discrimination litigation cases have set a precedent to make it possible to claim additional tax refunds on investments on the grounds that those taxes contradicted the Treaty of Rome principle of "free movement of capital." The ECJ will interpret the existing community law as it applies to each case, taking account of any specific circumstances. The Court's judgments are not therefore intended to create new generally applicable rules or legislation.
The Bank of New York strongly advises that clients should seek independent tax and legal advice, prior to attempting to obtain a refund in respect of these rulings.
The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company's extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.
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